[Hidden-tech] DBA, LLC, or Sub S?

[Rich]

Saturday, July 23, 2005, 5:37:25 PM, you wrote:

WL> With regard to DBA vs LLC or incorporation, it is my understanding (I'm not
WL> a lawyer) that you do have greater protection.

I am not lawyer either but I do have 20 years of starting companies
and just created an new Mass, LLC last year so refreshed my knowledge
so here goes some comments:

1) DBA is nothing but a formal registration of an alternate name, it
has no legal protection

2) LLC can be a number of forms, a sole member LLC has the tax aspects
of any other sole proprietor with the protection like a corporation,
multi-member LLCs are like any partnership.

3) There are two major types of corporation, Sub-S and regular, Sub-S
is like a partnership, and prevents the dual taxation of corporations.

Beyond that summary you need to do your own research.

WL> I would recommend getting the
WL> advice of a qualified Intellectual Property lawyer.

Lawyer yes, IP no, 'Intellectual Property', that is a totally
different field - you want a business lawyer.

WL> The three in the area
WL> that were frequently recommended to use when we were seeking a lawyer were:

WL> Nicolai Law Group in Springfield (Paul Nicolai)

I've know Paul for a number of years and used him recently with good
results.

>> What threshold would you pick for switching from DBA to INC?  I'm
>> considering switching from doing small software contracts on my own to
>> taking on a somewhat bigger contract and subcontracting part of the work
>> out.  Will INC really protect me a lot more than DBA for this purpose?

Once you get to bigger projects, both the isolation of a LLC or Corp,
and E+O (Errors and Omissions) Insurance becomes important.

-- 
Best regards,
 Rich                            mailto:rich at on-the-net.com